Revenue, fleet value fall at Hertz
By Patrick Hill06 November 2008
Hertz Equipment Rental Corporation's (HERC) worldwide equipment rental revenues in the third quarter declined 6.8%, compared to last year's period, to $433.1 million (€338 million). Adjusted pre-tax income for the quarter fell 25.7% from the same period last year to $81.1 million (63.3 million).
The company said book value of equipment generating revenue was $2.4 billion (€1.9 billion) as of 30 September, a fall of 10.6% from the first of the year. Average cost of rental equipment acquired during the quarter increased 0.2% year-over-year, compared to a rise of 6.7% from 2006 to 2007.
HERC said it "...continued to achieve strong growth in Canada, especially Western Canada where oil industry-related rental activity remains robust. Also, HERC continues to improve diversification into industrial and fragmented sectors of the US equipment rental market."
The US-based company, which operates 350 branches in the US, Canada, France, Spain and China, said it still expects to generate profits and positive cash flow for the full year. It recently raised equipment rental rates in major rental markets.